This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

Staying Busy After Retirement

The word &lsquo;retirement&rsquo; calls to mind images of snowbirds vacationing in Florida, but it&rsquo;s not always easy for small business owners to transition from driving a company to driving a golf cart.

Wed., Nov. 14, 2012

The word ‘retirement’ calls to mind images of snowbirds vacationing in Florida, but it’s not always easy for small business owners to transition from driving a company to driving a golf cart.

Letting go of a managerial role can often leave a retired entrepreneur unsure of where to turn their attention.

“Money will always be a concern, but the biggest thing for me is what I’m going to do all day to stay busy and mentally fit,” says Dean Drevniok, president of Frecon Construction, a general contracting company based in Russell, Ont.

As chairman of the Ottawa Construction Association, and an active member of the local construction community, Drevniok wants to shift into retirement the same way his father did — cutting down the weekly workload and minimizing stress, while keeping his mind sharp by maintaining his business connections.

Too much free time can be a shock to the system for a small business owner acclimatized to a jam-packed schedule. The risk of developing depression is heightened for retired entrepreneurs, particularly males. A 2006 study by the National Bureau of Economic Research found that the transition from full-time work to retirement can have a negative effect on retirees, largely because of the decrease in social interactions, which is linked to a 9% decline in mental health on the Center for Epidemiologic Studies Depression Scale — a common screening test for determining depression. Filling your calendar with stimulating activities is imperative in fostering stable mental health and warding off those post-career blues.

Here’s how the experts say Drevniok and other small business owners can make the most of their retirement.

PLAN AHEAD

Tina Di Vito, head of the BMO Retirement Institute and author of 52 Ways to Wreck your Retirement... And How to Rescue It, says it’s never too early to start planning for retirement — not only on a financial level, but also when it comes to figuring out what to do with free time. Di Vito says proper succession planning often takes business owners five to ten years, and includes deciding whether to continue working for the company part-time or as a mentor.

“Easing into retirement can also be an emotional transition for owners,” says Di Vito. “They live and breathe their business, and oftentimes they like to stay on at the executive level.”
BALANCE RELAXATION AND MOTIVATION

Cottaging and globetrotting are at the top of many retirees’ to-do lists, but small business owners sometimes feel overwhelmed with the amount of hours they wind up having to fill in a day.

“I have a long bucket list of traveling to do, but I also want to stay connected to the industry,” says Drevniok.

Keeping the business fire stoked often takes little more than signing up for local advisory councils, associations, charities, and boards of directors. And these positions often come with lots to do, as small business owners with a lifetime of experience bring invaluable expertise and contacts to boardroom tables.
SHARE WHAT YOU KNOW, OR LEARN SOMETHING NEW

That expertise can also be passed along to the next generation of entrepreneurs through mentoring, whether it be to a family member, student, or up-and-comer in the industry. Retirees can take the educator role one step further by taking on a part-time position at a university or college. Plus, says Di Vito, this adds another source of income to supplement RRSPs or other retirement savings.

And, for those eager to learn something new, or who lacked the opportunity to complete a post-secondary or master’s degree, there is also the option of going back to school. Plus, with the convenience of online courses, new degrees are easy to earn from home.
OPEN ANOTHER BUSINESS

The majority of entrepreneurs agree — owning a small business is a rewarding career choice. In a recent BMO survey, 92 percent of entrepreneurs reported they would go the small business route again if they had the chance. It’s spawned what Di Vito calls the trend of “senior-preneurship” — older citizens starting a new business or subsidiary of their former company.

Helming a budding business can be addictive, and many retired owners miss being in charge.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com